grace period

noun

: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation

Examples of grace period in a Sentence

The terms of the loan allow for a ten-day grace period.

Recent Examples on the Web

Though payments resumed in 2023, the Biden administration had provided a year-long grace period that ended in October. —Khaleda Rahman, MSNBC Newsweek, 4 July 2025

The Supreme Court decisions included a 30-day grace period before going into effect. —Churchill Ndonwie, Miami Herald, 27 June 2025

Clubs normally have a two-hour grace period to complete deals after the window closes, although the relevant paperwork will need to be submitted to the FA by 7pm. —Dan Sheldon, New York Times, 13 May 2025

The Celtics masterfully manipulated the one-year grace period in 2023-24 that allowed teams to get their books in order before the new apron restrictions went into effect. —Bryan Toporek, Forbes.com, 9 May 2025

Word History

First Known Use

1907, in the meaning defined above

Rhymes for grace period

• myriad
• photoperiod

Legal Definition

grace period

noun

grace pe·​ri·​od

: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as

a

: a period of 30 days or one month during which premiums on insurance policies may be paid without penalty

b

: a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code

called also days of grace